# Cigar mark up



## GlockG23 (Mar 7, 2009)

Hi Guys 
I want to talk about cigar price mark up

What percent do you think they mark cigars up to sale prices *not MSRP*?

I personally believe that cigar markup is 130 percent or more

example
at 130% markup on a cigar that costs them $2.00 / .70 that total + 2.00 = $4.86 selling price
at 230% markup on a cigar that costs them $2.00 / .70 that total + 4.00 = $6.86 selling price

(is my math correct I hope so)

How else can cbid and others, offer such good buys at times?

What do you guys think?


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## dj1340 (Mar 30, 2009)

I think I read somewhere that there is at least a 100% markup. More depending on where your at.
i could be wrong.


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## defcon3 (May 3, 2009)

That's a very good question G23...

I would imagine that you are pretty close to the mark however, I have no idea...

I know that the more a company/store orders, the lower the price, but I certainly would like to have an idea...

It would not prevent me from buying cigars or discourage me, but an interesting topic indeed!!!


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## MrMusicMan1 (Sep 5, 2008)

On average I think you are right with the 120%-130% markup.


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## Habanolover (Feb 22, 2006)

Bill, when I worked at one of B&M's around here our markup was 120%.


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## GlockG23 (Mar 7, 2009)

an on-line cigar shop opening may result from this thread lol


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## havanajohn (Apr 4, 2009)

Bill, I have to agree with you. I have always guessed the markup was at least 100%, and in looking at the prices on C-Bid at times made me think that it was even higher. I really dont think that the retailers do such things as 'loss leaders" like grocery stores do because once you come in to buy at the 'loss' price, most people will not buy anything else, unlike a grocery store in which people will buy other items.


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## Rubix^3 (Nov 10, 2008)

I worked in retail for years and standard markup was almost always 100% --referred to as "keystone": you buy for 5 you sell for 10 etc... 
I never sold cigars though, so I don't know how those are specifically.


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## SMOKE20 (Apr 26, 2008)

I would have to agree with bill on the 130% 115% to 130%


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## GlockG23 (Mar 7, 2009)

madurolover said:


> Bill, when I worked at one of B&M's around here our markup was 120%.


So an on-line super store with more buying power would even get a sweeter cut, do you agree?

boy I would like to know what that would be


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## Habanolover (Feb 22, 2006)

GlockG23 said:


> So an on-line super store with more buying power would even get a sweeter cut, do you agree?
> 
> boy I would like to know what that would be


They may be like Wal-Mart. Yes they buy products for less because they buy in large numbers but they can pass on some savings to us because they sell in large numbers also.

Also the shop I worked at was stryggling to stay alive and a large part was due to overhead. Buying DW for the humidifiers, humidifiers when they went out, high electric to keep the shop at 68 degrees, etc.


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## Plop007 (Jul 8, 2009)

I went to my local b&m and purchased a cigar.

In my notes I put the price of the cigar at 4 bucks but when I saw it in the shop it was 4.75 but its a good smoke.

Is it cheaper to buy cigars online than going to your local b&m? I know its good to support them but you have to save money as well.


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## fatboy05 (Jan 18, 2009)

Forget the mark up, Here the only person making any $ is the state and feds.

Also you have whats called a "mark up". 100% mark up is basically doubling the price. Then you have a "profit margin" In a profit margin to get a true lets say 40% profit a cost of $3.00 to the B&M, he would sell it at $5.00. If he "marked it up" 40% it would be $4.20 Thats before any TAXS!


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## dubels (Jun 21, 2009)

California B&M prices are out of control, besides for sticks like Padron 1964 and Opus X. I actually find the competition on CBID drives the prices on those sticks a little high. But typically I have seen RP Vintage 1990 Robustos go for $10-15, while online I can find them for around $4-5 a stick. I am sure a lot of that is California taxes but when I asked around what they charge for Opus X and the Padron 1964 Anni, they range from $15-30 depending on size, which is not bad. I found a Padron 1964 Anniversary Imperial go for $17 while on CBID they average $14.


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## Koolpsych (Jun 3, 2009)

Ahh this thread is depressing on how overpriced a lot of the cigars really are, and the fact that I still love them too much to care!


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## ribletman (Jun 30, 2009)

Koolpsych said:


> Ahh this thread is depressing on how overpriced a lot of the cigars really are, and the fact that I still love them too much to care!


Just because there is a 100%+ markup does not make them overpriced. Cigar shops have a high overhead compared to many, and they must maintain an expensive inventory that can go bad on them without diligence. Most specialty products have well past 100% markup by the time you buy them.


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## Egis (Feb 3, 2009)

Well I'm really good friend with owner of my local B&M, and I know most of the prices of cigars, real prices. Like for example NUB box any kind any size is from $55 to $70 whats what they gets em for, they sell box for 130$, single for $5,75. So difference is $50 per box, and $58 if he sells them in singles! So I don't know how big is mark up? less then 50%? or 90%?


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## Rubix^3 (Nov 10, 2008)

ribletman said:


> Just because there is a 100%+ markup does not make them overpriced. Cigar shops have a high overhead compared to many, and they must maintain an expensive inventory that can go bad on them without diligence. Most specialty products have well past 100% markup by the time you buy them.


Dittos. Running a store front, employees, etc... thats why local B&Ms, and small indie retailers have struggled against online outfits in every industry. Like most folks, I shop some online, but I like to go to my local and throw them some business regularly too. When I do, I don't worry myself over the cost spread if I where comparing them to cbid or something. The point being, the town would feel lonely without the B&M. --mark em what you need to fellas.


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## stanthetaxman (Oct 10, 2005)

My experience in this part of Florida is a 100% mark up/50% gross profit.
MOST of the time, THAT's what MSRP was, too.


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